March 23, 2002	Saturday	Muharram 8, 1423

KARACHI, March 22: Cotton prices on Friday soared to new seasonal peak level as ginners further raised their asking prices followed by reports of higher export orders for the textile goods.

A deal of 2,000 bales from an upper Sindh ginnery changed hands at Rs1,900 per maund considered to be higher rate comparable to early season prevailing price of Rs2,000 or slightly above.

But it was a big improvement from the seasonal lows of Rs1,225 to Rs1,900 and reflects that the presence of the TCP has restored sanity to the cotton trade after highly uneven prices movements, dealers said.

Floor brokers said the deals signals a major change in the spinner buying preferences and it may reflect some positive developments on the export front.

“Fine quality lint from the upper Sindh ginnery apart, spinners are not that fool to buy it at rates beyond their export parity levels”, they ask.

However, it is positive development as one hand it signals a steady inflow of textile import orders and higher firm export orders on the other, they added.

As a result, speculation was at its peak on the market that prices are heading toward the Rs2,000 per maund based apparently on the imminent quality war.

The end-product users, notably the ancillary industry is worried over the rising prices of lint cotton as the increase will be passed on to them in the form of higher yarn prices in due course, dealers said.

Already yarn prices are said to be on the higher side in line with the increase in lint prices but what worries them most is the fact that the value-added sector may become uncompetitive if prices rise further, they added.

Meanwhile, pre-holiday mood prevailed on the market as both buyers and sellers made guarded offers because of physical delivery problems.

Official spot rates were again held unchanged in the absence of physical trading.

Ready offtake was light as till late in the evening a deal of K-68, Mandodaro was reported at Rs1,900 per maund without 15 per cent sales tax.